UK online advertising supports the total advertising market

The Internet Advertising Bureau reports that in the first six months of 2008, £1.7 billion was spent in the UK on online advertising, an increase of online market share to 19% of the total market.

Total advertising spending would have dropped 4.6% without the online advertising contribution. Online advertising spending was £1,600 million in the six months to 30 June, a 21% increase on the first six months in 2007.

TV, press, outdoor and radio had reductions in advertising spending. The total advertising market was £8,900 million, a reduction of .7% for the six months compared to the same period last year.

Online advertising increased by £348 million compared with the same period in 2007. Online advertising increased its market share by four points to 19%. Total press display advertising had a market share of 19.3% and TV had 21.7%.

Paid search grew by 28% over the previous first half period, an amount of £981 million in the first half of 2008, with its market share up from 57.8% to 58.3%.

Online display advertising increased by 16.3% over the previous year’s first half to £333.8 million. There was a 36% increase in spending on banners, rich media and video.

In display advertising spending Technology had 17.3% market share, Finance 11.9%, Entertainment & Media 10.7% and Recruitment 9.9%.

Internet classifieds grew by 30.2% over the previous first half, an amount of £361 million as recruitment, property, automotive and small ads moved to online from print classifieds, which declined 10% compared to the previous first half.

31.6 million people in the UK are now online. The online usage now reflects the demographic make-up of the UK, with a 52% being male and 48% female.

21% of internet users are 25 to 34 years and the over 50’s make up 30% of total time spend online.

So online advertising is taking market share from traditional media on an ongoing basis.

Our UK Online Business Directory, with 1.6 million businesses listed, is part of this movement, and provides qualified prospects to the businesses, with no cost for them.